Lawson Japan to stock Muji products

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Japanese convenience-store business Lawson will cooperate with local home-goods network Muji in a sales and brand development partnership, according to a Nikkei Asia report.
The deal will see Muji products stocked in Lawson Japan outlets as well as the development of further daily-use products under a new private brand, which may lead to a fresh store concept. It replaces Muji’s previous supply contract with rival chain FamilyMart.
The move will take advantage of shifting consumer behaviors as more Japanese shoppers purchase daily items from convenience store chains in the wake of the coronavirus outbreak.
Around 20 percent of items currently stocked at Lawson are likely to be replaced with Muji-branded products, most probably goods such as eco-friendly detergents and nutritional pre-packaged foods, in high demand since the advent of Covid-19.
Early customer response to the change in a small number of outlets will determine how broadly the initiative is applied across Lawson’s 15,000-store network.
The agreement also addresses shrinking opportunities to expand given the gradual decline in Japan’s population, providing a broader product range in existing stores.
Muji currently operates more than 400 locations in Japan.
Questions & Answers
Q.Which items are likely to be replaced by Muji products in Lawson stores?
Which items are likely to be replaced by Muji products in Lawson stores?
Around 20 percent of Lawson's current stock will be replaced. These are most probably daily-use goods like eco-friendly detergents and nutritional pre-packaged foods, which have seen increased demand since the pandemic.
Q.How will Lawson determine the extent of Muji product integration across its stores?
How will Lawson determine the extent of Muji product integration across its stores?
Lawson will assess early customer responses from a small number of outlets. This initial feedback will then guide how widely the new product initiative is rolled out across their 15,000-store network.
Q.What business challenges does this partnership aim to address for Lawson?
What business challenges does this partnership aim to address for Lawson?
The agreement addresses shifting consumer behaviours towards convenience stores for daily items, and also aims to provide a broader product range in existing stores given the shrinking opportunities for expansion due to Japan’s declining population.
Q.Which retail chain did Muji previously have a supply contract with?
Which retail chain did Muji previously have a supply contract with?
Muji's new partnership with Lawson replaces its previous supply contract with rival convenience store chain, FamilyMart. This indicates a shift in Muji's retail strategy for its products.
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